(IRF.L) IRF European Finance Investments Ltd Buy/Sell

The directors, to the best of their knowledge, state that:

The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 1981 of Bermuda. They are also responsible for safeguarding the assets of the company and taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the directors are aware:

Legislation in Bermuda governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

To the Shareholders of IRF European Finance Investments Ltd

Introduction

We have reviewed the accompanying interim consolidated statement of financial position of IRF European Finance Investments Ltd (the "Company") and the related interim consolidated statement of comprehensive income, changes in equity and cash flows for the six-month period then ended, and the selected explanatory notes.

Management is responsible for the preparation and fair presentation of this interim financial statement in accordance with the International Financial Reporting Standards that have been adopted by the European Union and apply for interim financial information ("IAS 34"). Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" to which the Greek Auditing Standards indict. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Greek Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with IAS 34.

Athens, 24 August 2009

The Chartered Accountant The Chartered Accountant

Vassilis Kazas Panagiotis Christopoulos
SOEL Reg. No 13281 SOEL Reg. No 28481

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Amounts presented in EUR '000 Note 1/1 - 30/06/09 1/1 - 30/06/08 1/4/- 30/06/2009 1/4 - 30/06/08
(as restated) (as restated)
Amounts presented in EUR '000 Note 1/1 - 30/06/09 1/1 - 30/06/08 1/4/- 30/06/2009 1/4 - 30/06/08
(as restated) (as restated)

Income
Interest and similar income 1,208 5,084 344 2,158
Dividend and other income 6 18,198 729 18,198 729
Exchange differences - - (5,806) -
Realised gain from disposal of - 10,847 - 10,847

available for sale financial assets
Realised gain from disposal of 5 13,406 - 13,377 -

financial assets held for trade
Unrealised gain from valuation 539 - 539 -

of financial assets at fair value through Profit & Loss
Derivatives - 9,570 - 9,570
Total operating income 33,350 26,231 26,652 23,305

Expenses
Interest and similar expenses (5,146) (2,736) (2,475) (2,547)
Fee and commission expense (307) (542) (307) (304)
Exchange differences (555) (10,399) (555) 373
Unrealised loss from valuation - - 228 -

of financial assets at fair value through Profit & Loss
Impairment losses on 7 (17,397) - - -

available-for-sale financial assets
Management fees (50) (50) (25) (33)
Other operating expenses (462) (219) (279) (186)
Total operating expenses (23,918) (13,947) (3,413) (2,697)

Profit after tax from 9,432 12,284 23,239 20,607

continuing operations

Net loss from discontinued 8 - (9,477) - (14,764)

operations

Profit after tax 9,432 2,807 23,239 5,843

Other comprehensive income
Available-for-sale financial 7 33,870 (47,042) 33,870 (42,168)

assets
Exchange differences on - (9) - 13

translating foreign operations
Other comprehensive income for 33,870 (47,042) 33,870 (42,146)

the period net of tax

Total comprehensive income for 43,302 (44,235) 57,108 (36,303)

the period after tax

Profit after tax attributable to:
Owners of the parent Company 9,432 4,596 23,239 11,624
Minority rights - (1,789) - (5,781)

Total comprehensive income attributable to:
Owners of the parent Company 43,302 (36,303) 57,108 (29,524)
Minority rights - (7,940) - (6,787)

Earning per share attributable to parent company's shareholders ( EUR/share ) From continuing and discontinued operations

The notes on the following pages form an integral part of these consolidated interim financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Amounts presented in EUR '000 Note 30 June 2009 31 December 2008
(as restated)

Non-current assets
Investment portfolio 11 276,218 248,508
Total non-current assets 276,218 248,508

Current assets
Trading portfolio & other financial 10 4,135 5,965

assets at fair value through Profit & Loss
Other assets 12 18,254 607
Cash and other equivalents 9 129,333 148,610
Total non-current assets 151,722 155,182

TOTAL ASSETS 427,940 403,689

Shareholders equity
Share capital 15 147 147
Share premium 15 382,491 400,443
Revaluation reserve 7 33,870 -
Retained losses (187,617) (197,049)
Total equity attributable to 228,892 203,541

shareholders' of the Parent Company
Minority rights - -
TOTAL EQUITY 228,892 203,541

Non-current
Long term loans 13 198,134 198,393
Total non-current liabilities 198,134 198,393

Current liabilities
Other liabilities 14 914 1,755
Total current liabilities 914 1,755

TOTAL LIABILITIES 199,048 200,148

TOTAL LIABILITIES AND EQUITY 427,940 403,689

The notes on the following pages form an integral part of these consolidated interim financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to shareholders of the Parent Company
Note Share capital Share premium Revaluation reserve Other reserves Retained earnings / Total Minority rights Total
(losses)

Consolidated Statement of Changes in Equity

Amounts presented in EUR '000
Opening balance as at 1 147 400,443 - - (197,049) 203,541 - 203,541

January 2009
Share premium reduction & 15 - (17,951) - - - (17,951) - (17,951)

return to shareholders
Transactions with owners - (17,951) - - - (17,951) - (17,951)
Net result for the period - - - - 9,432 9,432 - 9,432

Other comprehensive income: Gains/ losses directly recognized in equity:

income/(loss) for the period

Balance as at 30 June 2009 147 382,491 33,870 - (187,617) 228,892 - 228,892

The notes on the following pages form an integral part of these consolidated interim financial statements.

Consolidated Statement of Attributable to shareholders of the Parent Company

Changes in Equity
Amounts presented in EUR '000 Share Capital Share Premium Revaluation Reserve Other Reserves Retained Earnings / Total Minority rights Total
(losses)
Opening balance as at 1st 147 400,443 (2,570) 16,587 72,492 487,099 290,248 777,347

January 2008
Equity share options granted - - - 103 - 103 395 498

to employees
Dividend relating to 2007 - - - - (22,105) (22,105) (9,829) (31,935)
Capitalisation to legal - - - 196 (196) - - -

reserves
Transactions with owners 299 (22,301) (22,002) (9,434) (31,437)
Net result for the period - - - - 4,596 4,596 (1,789) 2,807

Other comprehensive income: Gains/ losses directly recognized in equity:

income/(loss) for the period
Balance as at 30 June 2008 147 400,443 (43,466) 16,885 54,784 428,793 272,874 701,667

The notes on the following pages form an integral part of these consolidated interim financial statements.

CONSOLIDATED CASH FLOW STATEMENT

Amounts presented in EUR '000 Note 30 June 2009 30 June 2008
(as restated)

Cash flows from operating activities
Profit before tax of continuing operations 9,432 12,284

Adjustments for:
Add: Impairment losses on financial assets 7 17,397 -
Profit/(loss) from revaluation of financial (490) -

assets at fair value through Profit & Loss
Proft /loss from sale of a.f.s. portfolio - (11,048)
Dividend income - (729)
Interest and other non cash expenses 3,938
Exchange differences 487 8,506
Cash flows from operating activities before 30,765 9,013

changes in working capital

Changes in working capital:
Net (increase)/decrease in trading 1,830 -

securities
Net (increase)/decrease in other assets (17,647) (1,379)
Due to financial institutions - 140,000
Net increase/(decrease) in other liabilities (841) 18,363
Cash flows from operating activities before 14,106 165,997

payment of income tax
Net cash flows from operating activities of - 2,479

discontinued operations
Net cash flows from operating activities 14,106 168,475

Cash flows from investing activities
Proceeds from a.f.s. portfolio (11,384) (350,316)
Interest received 1,208 -
Net cash flows from investing activities of - (52,368)

discontinued operations

Net cash flow from investing activities (10,177) (402,684)

Cash flows from financing activities
Interest paid (4,887) (2,394)
Dividends paid - (22,105)
Share premium reduction & return to 15 (17,573) -

shareholders
Repayment of borrowings (259) -
Net cash flows from financing activities of - (10,468)

discontinued operations
Net cash flow from financing activities (22,719) (34,968)

Net decrease in cash and cash equivalents (18,790) (269,176)
Cash and cash equivalents at the beginning 148,610 559,372

of the period
Effect of exchange rate fluctuations on cash (487) (8,506)

and cash equivalents
Cash and cash equivalents at the end of the 16 129,333 281,690

financial period
Amounts presented in EUR '000 Note 30 June 2009 30 June 2008
(as restated)

Cash flows from operating activities
Profit before tax of continuing operations 9,432 12,284

Adjustments for:
Add: Impairment losses on financial assets 7 17,397 -
Profit/(loss) from revaluation of financial (490) -

assets at fair value through Profit & Loss
Proft /loss from sale of a.f.s. portfolio - (11,048)
Dividend income - (729)
Interest and other non cash expenses 3,938
Exchange differences 487 8,506
Cash flows from operating activities before 30,765 9,013

changes in working capital

Changes in working capital:
Net (increase)/decrease in trading 1,830 -

securities
Net (increase)/decrease in other assets (17,647) (1,379)
Due to financial institutions - 140,000
Net increase/(decrease) in other liabilities (841) 18,363
Cash flows from operating activities before 14,106 165,997

payment of income tax
Net cash flows from operating activities of - 2,479

discontinued operations
Net cash flows from operating activities 14,106 168,475

Cash flows from investing activities
Proceeds from a.f.s. portfolio (11,384) (350,316)
Interest received 1,208 -
Net cash flows from investing activities of - (52,368)

discontinued operations

Net cash flow from investing activities (10,177) (402,684)

Cash flows from financing activities
Interest paid (4,887) (2,394)
Dividends paid - (22,105)
Share premium reduction & return to 15 (17,573) -

shareholders
Repayment of borrowings (259) -
Net cash flows from financing activities of - (10,468)

discontinued operations
Net cash flow from financing activities (22,719) (34,968)

Net decrease in cash and cash equivalents (18,790) (269,176)
Cash and cash equivalents at the beginning 148,610 559,372

of the period
Effect of exchange rate fluctuations on cash (487) (8,506)

and cash equivalents
Cash and cash equivalents at the end of the 16 129,333 281,690

financial period The accompanying notes constitute an integral part of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS

1. GENERAL INFORMATION

Country of incorporation

IRF was incorporated on 8 September 2005 under the Bermuda Companies Act 1981. The Company was initially listed on AIM on 14 November 2005 and on 19 January 2009 transferred to the Specialist Fund Market (the "SFM"), a regulated market operated by the London Stock Exchange plc. The Company's registered office is at Canon's Court 22 Victoria Street, Hamilton HM12, Bermuda.

Principal Activities

The Group was initially engaged in the provision of banking, financial and insurance services. IRF was formed as an investing company to serve as a vehicle for the acquisition of one or more businesses in the financial services industry in Europe, with a primary focus on credit institutions and insurance companies in Greece, Bulgaria, Romania and Turkey.

On 29 June 2006, the Company acquired a controlling interest in Proton Investment Bank, a Greek bank listed on the Athens Stock Exchange. Subsequent to this acquisition, Proton Investment Bank merged with Omega Bank, resulting in IRF having an interest in the newly merged entity, Proton Bank. Proton Bank and its subsidiaries operate in the sectors of retail, corporate and investment banking, portfolio management, insurance and other financial services. Proton Bank is licensed by the Bank of Greece to operate as a financial institution in Greece. Proton Bank, which is established in Greece and is supervised by the Bank of Greece, operates through a network of 28 branches.

On 24 September 2008, IRF sold a 15.95% interest in Proton Bank from its 20.6% holding in Proton Bank. Following such disposal, the IRF directors holding positions on the Board of Directors of Proton Bank resigned. As at 31 December 2008, IRF had disposed of its entire investment in Proton Bank. The results of Proton Bank's Group were consolidated in the financial statements of IRF, as discontinued operations, up to the date of the disposal (see notes 2.3, 3.1, 4 and 8).

IRF acquired and continues to hold approximately 11% of the issued shares in Marfin Investment Group ('MIG') which, as at 30 June 2009, is the most significant investment in the company's portfolio. MIG invests in private equity, privatisations and infrastructure projects and principally operates in Greece, Cyprus and South East Europe. All equity holdings are publicly listed on the Athens Stock Exchange.

2. BASIS OF INTERIM FINANCIAL STATEMENT PREPARATION

2.1 Statement of compliance

The condensed consolidated interim financial statements for the six month period ended 30 June 2009 have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and should be read in conjunction with the audited financial statements for the year ended 31 December 2008.

The financial information set out in this interim report does not constitute statutory financial statements pursuant to Section 84 of Bermuda Companies Act 1981. The Group's statutory financial statements for the year ended 31 December 2008 were approved by the Board of Directors on 24 April 2009. The auditor's report on those financial statements was unqualified.

2.2 Functional and presentation currency

The current financial statements are presented in Euro, which is the functional currency of the Group. The functional currency is the currency of the primary economic environment in which an entity operates and is normally the one in which it primarily generates and expends cash. Management used its judgment to determine the functional currency that most faithfully represents the economic effects of the underlying transactions, events and conditions.

All amounts are presented in thousand Euros unless mentioned otherwise. Due to rounding, percentages and numbers presented throughout the condensed interim consolidated financial statements may not match the counterparts in the financial statements. All amounts expressed in dollars, are US dollars.

2.3 Comparative figures

Consolidated statement of financial position, comprehensive income statement, and cash flow statement for the comparative period have been adjusted for the reclassification of income statement to reflect results of discontinued operations and the implementation of the revised IAS 1. Details are provided in note 3.1.

2.4 Use of estimates

The preparation of the financial statements in accordance with the IFRS requires management to make estimates, judgements and assumptions that affect the application of accounting policies and the reporting amounts of assets, liabilities, income and expenses.

Assumptions and estimates are reviewed on an ongoing basis and are revised based on experience and other factors. Revisions of the accounting estimates are recognised in the period in which estimates are revised and in any future periods affected. Assumptions and estimates include expectations on future event and outcomes that are considered as reasonable given the current conditions. Actual results may differ from these estimates.

3. SUMMARY OF IMPORTANT ACCOUNTING POLICIES

3.1 Change in accounting policies

These condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 December 2008 except for the adoption of:

Moreover, in previous periods the management prepared the consolidated financial statements in the format of "order of liquidity" according to IAS 1 due to the nature of the operations of the consolidated group of Proton Bank. The format of "order of liquidity" is used as best practise by all financial institutions. Due to the disposal of the entire Proton Group, the management has decided to adopt the presentation of "current and non-current assets", and "current and non-current liabilities", as separate classifications in its statement of financial position, as most funds and investing entities implement in their financial statements. The aforementioned adoption did not lead to any reclassifications of assets or liabilities.

The statement of comprehensive income analysis is based upon the 'nature of expense' method.

In previous periods the management prepared the consolidated segment analysis based upon the operations of the consolidated group of Proton Bank. After the disposal of Proton Bank, the directors came to the conclusion that IRF operates only in the investment in listed securities business segment. Also, IRF, up to the current period, invests mainly in the Greek market.

3.2 Other new standards, amendments and interpretations with effective date as of 1 January 2009, with no applicability or significant impact:

(a) IFRIC 13: "Customer Loyalty Programmes (effective for annual accounting periods beginning on or after 1 July 2008);

(b) IAS 23: (Revised 2007) "Borrowing Costs" (effective from 1 January 2009)

The revised IAS 23 removes the option of immediately expensing borrowing costs directly attributable to the acquisition, construction, or production of a qualifying asset as part of the cost of that asset;

(c) IFRS 2: "Share-based Payment" - Amendment 2008: Vesting Conditions and Cancellations (effective from 1 January 2009)

This amendment clarifies that only service conditions and performance conditions are vesting conditions, while all other features need to be included in the grant date fair value. The Group is currently assessing the implications of the adoption of the aforementioned amendment;

(d) IAS 32: Financial Instruments: Presentation and IAS 1: Presentation of Financial Statements - Amendment 2008: Puttable Financial Instruments and Obligations Arising on Liquidation (effective from 1 January 2009)

These amendments address the classifications of some puttable financial instruments as well as instruments or their components that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation. The above mentioned amendments are not applicable at present for Group activities;

(e) IFRIC 11: "Group and treasury share transactions"

IFRIC 11 provides guidance on IFRS 2 application in three cases: i) share-based payment arrangements involving an entity's own equity instruments, ii) share-based payment arrangements involving equity instruments of the parent and iii) a subsidiary granting rights to equity instruments of its parent to its employees. An entity shall apply this interpretation for annual periods beginning on or after 1 March 2008.

(f) IFRS 7 (Amendment 2009): Improvements to the Financial Instruments disclosures (effective from 1 January 2009)

This amendment aims to provide additional and improved disclosures concerning the fair value of the financial instruments and the liquidity risk. Among the changes of the standard, which are estimated to modify the way that the relative information of the Group is presented, are: the introduction of three levels for the definition of the fair value (market prices, valuation based on remarkable market data and valuation based on non-remarkable market data), requirement for disclosure of changes at the valuation methods used and requirement for additional information concerning the third level including the sensitivity analysis.

3.3 New standards, amendments and interpretations that have been issued and are subject to endorsement by the European Union:

(a) IFRS 3: "Business Combinations" - Revised 2007 and subsequent amendments in IAS 27, 28 and 31 (effective the first annual reporting period beginning on or after 1 July 2009)

The revised standard introduces significant amendments for the application of the acquisition method for business combinations. Among other changes the standard introduces the possibility of minority interests being measured at fair value. Furthermore, the revised standard requires that the acquirer of a subsidiary recognizes the assets acquired and liabilities assumed as a transaction with owners of the business and any difference should be recognized in equity. The revised IFRS 3 applies for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009, while no consolidation adjustments are required for the period before the revised standard will become effective. Thus, the adoption of the revised standards will have no significant impact on the Group's financial statements.

(b) IFRIC 15: "Agreements for the Construction of Real Estate"

An entity shall apply IFRIC 15 "Agreements for the Construction of Real Estate" for annual periods beginning on or after 1 January 2009. This interpretation applies to the accounting for revenue which refers to the real estates' disposal. This interpretation does not apply to the Group's activities;

(c) IFRIC 16: "Hedges of a Net Investment in a Foreign Operation";

(d) IFRIC 17: "Distribution of non-cash assets to owners" (effective for annual periods beginning on or after 1 July 2009)

This interpretation, issued on 27 November 2008, provides guidance to an entity in order to recognize and subsequently measure a liability arising from the distribution of non-cash assets to owners;

(e) IFRIC 18 "Transfer of assets from customers"

Effective for annual periods beginning on or after 1 July 2009. This interpretation, issued on 29 January 2009, clarifies the accounting treatment for agreements under which an entity receives from a customer an item of property, plant and equipment that the entity must then use to serve conventional obligations to him. The interpretation also applies in cases where the entity receives cash from customers to construct or buy an item of property, plant and equipment to be used as defined above. This interpretation does not apply to Group activities.

(f) IAS 39: "Financial instruments: Recognition and Measurement": Eligible Hedged Items Amendment to IAS 39

Amendment to IAS 39 clarifies accounting hedges issues and, in particular, inflation and one-sided risk of a hedged item. An entity shall apply those amendments to IAS 39 for annual periods beginning on or after 1 July 2009;

4. STRUCTURE OF THE GROUP

Entities consolidated under full consolidation method at 31 December 2008 and at 30 June 2009:
Name Country Direct and indirect Relation that dictated Note
holding the consolidation
IRF EUROPEAN FINANCE BERMUDA Parent

MIMOSA TRADING SA MARSHALL ISLANDS 100% Percentage Ownership Direct Stake
MYRTLE TRADING COMPANY MARSHALL ISLANDS 100% Percentage Ownership Direct Stake

The following table indicates the Group structure as at 30 June 2008:

Name Country Direct Shareholding Indirect Direct and Indirect Relation that Note
% Shareholding % Holding dictated the
consolidation
Name Country Direct Shareholding Indirect Direct and Indirect Relation that Note
% Shareholding % Holding dictated the
consolidation
IRF EUROPEAN FINANCE BERMUDA Parent

MIMOSA TRADING SA MARSHALL ISLANDS 100.00% 0.00% 100% Percentage Ownership Direct Stake
MYRTLE TRADING COMPANY MARSHALL ISLANDS 100.00% 0.00% 100% Percentage Ownership Direct Stake

PROTON BANK SA GREECE 20.60% 0.00% 20.60% Control Direct Stake
FIRST GLOBAL BROKERS SA SERBIA 0.00% 16.63% 16.63% Control Indirect stake
through "Proton
Bank"
PROTON MUTUAL FUNDS SA GREECE 0.00% 20.58% 20.58% Control Indirect stake
through "Proton
Bank"
OMEGA INSURANCE BROKERS SA GREECE 0.00% 13.60% 13.60% Control Indirect stake
through "Proton
Bank"
PROTON INSURANCE SA GREECE 0.00% 18.80% 18.80% Control Indirect stake
through "Proton
Bank"
INTELLECTRON SYSTEMS SA GREECE 0.00% 11.46% 11.46% Control Indirect stake
through "Proton
Bank"

Omega Portfolio Investment SA GREECE 0.00% 6.01% 6.01% Indirect stake
through "Proton
Bank"

DISPOSAL OF SHAREHOLDING IN PROTON: On 24 September 2008, IRF sold 10 million shares in Proton Bank for a gross sales price of EUR65 million. The consideration for this disposal was in the form of cash. Following IRF's disposal of these shares in Proton Bank, the IRF directors holding positions on the Board of Directors of Proton Bank resigned. As at 30 September 2008, IRF held approximately 2.9 million shares in Proton Bank, representing an interest of approximately 4.65%. As at 31 December 2008, IRF had disposed of its entire investment in Proton Bank. The results of Proton Bank's Group were consolidated in the financial statements of IRF, as discontinued operations, up to the date of the disposal (note 8).

Information on consolidation

MIMOSA TRADING SA: This company is duly incorporated and filed articles of incorporation under the provisions of the Marshall Islands Business Corporation Act on 6 July 2007. IRF is the owner of five hundred (500) fully paid and non-assessable shares of the capital stock of the corporation. The aggregate number of shares of stock that this company is authorized to issue is five hundred (500) registered and/or bearer shares without par value.

MYRTLE TRADING COMPANY: This company is duly incorporated and filed articles of incorporation under the provisions of the Marshall Islands Business Corporation Act on 6 July 2007. IRF is the owner of five hundred (500) fully paid and non-assessable shares of the capital stock of the corporation. The aggregate number of shares of stock that this company is authorized to issue is five hundred (500) registered and/or bearer shares without par value.

5. REALISED GAIN FROM DISPOSAL OF FINANCIAL ASSETS HELD FOR TRADE

During the second quarter of 2009, IRF engaged in significant investing activities, trading selected stocks and securities on the Athens Stock Exchange. The Company acquired a total of approximately EUR 35.7 million (acquisition cost) of listed securities and disposed of them for a total of approximately EUR 49 million, realising a profit of aproximatelly EUR 13.3 million.

6. DIVIDEND AND OTHER INCOME

As mentioned above, the major investment of IRF is the placement in MIG. At an ordinary General Meeting held on 9 June 2009, MIG's shareholders resolved to distribute EUR0.20 per share in the form of a constructive dividend. The record date for the determination of the beneficiaries was set as 26 June 2009. *he date of payment was set as 9 July 2009. IRF, according to the above dates and the relevant participation, was entitled to approximately EUR16.3 miillion. Shareholders were offered the option to reinvest the constructive dividend in return for MIG shares in whole or in part, at a price of EUR2.76 per share, notably equal to the average closing price of MIG's shares on the Athens Stock Exchange in the first five sessions during which the share was traded without the right to capital refund, discounted by 10%.

7. IMPAIRMENT LOSSES

As at 31 December 2008, the total amount of approximately EUR185,146,000 was recognised as an impairment loss, generated from the difference between the acquisition cost of the investments classified as "available for sale" and fair value of the aforementioned portfolio. Following the stipulations of IAS 39, when in a subsequent period after the initial impairment, the decline in the fair value of an "available for sale" financial asset continues, the difference between the new fair value and the previous evaluation is recognised in profit or loss. The amount of EUR17,397,423.99 was generated from the difference between the carrying amounts of the investments classified as "available for sale" as at 31 December 2008 and fair value of the aforementioned portfolio at the end of the previous quarter (31 March 2009). As at 30 June 2009 the portfolio's difference between the fair value and the 1st quarter evaluation increased positively by approximately EUR33.87 million. This difference has been recognised directly to equity.

8. DISCONTINUED OPERATIONS

8.1 NET LOSS FROM DISCONTINUED OPERATIONS

On 24 September 2008, IRF sold 15.95% investment in Proton Bank from its 20.6% interest. The results of Proton Bank's Group were consolidated in the financial statements of IRF, as discontinued operations, up to the date of the disposal and for the comparative periods. Net profit from discontinued operation is analyzed as follows:

Amounts presented in EUR '000 30/06/2008 1/4 - 30/06/08
Amounts presented in EUR '000 30/06/2008 1/4 - 30/06/08
Interest and similar income 63,761 31,861
Interest and similar charges (42,679) (20,955)
Net interest income 21,082 10,906
Fee and commission income 17,135 6,707
Fee and commission expense (2,625) (1,798)
Net fee and commission income 14,510 4,909
Income from insurance services 17,251 7,610
Expenses from insurance services (4,209) (2,191)
Net income from insurance services 13,042 5,419
Dividend income 1,073 1,070
Net trading income (12,164) (5,622)
Net income from financial instruments designated 7,010 (415)

at fair value
Other operating income 1,078 608
Total net income 45,630 16,876
Staff costs (14,845) (7,750)
Other operating expenses (12,977) (6,981)
Depreciation (3,816) (1,904)
Insurance claims (10,572) (5,012)
Impairment losses on financial assets and non (3,063) (3,011)

financial assets
Total operating expenses (45,272) (24,657)
Share of (losses)/profits of associates (899) (187)
Loss before tax (542) (7,968)
Less: Income tax (1,216) 924
Loss after tax from discontinued operations (1,758) (7,044)
Impairment of goodwill previously recognised (7,720) (7,720)
Net loss after tax from discontinued operations (9,477) (14,764)

9. CASH AND OTHER EQUIVALENTS
Amounts presented in EUR '000 30/06/2009 31/12/2008
Petty cash 1 1
Deposits placed in financial institutions 22,580 3,569
Time deposits 106,751 145,039
Total 129,333 148,610

10. TRADING PORTFOLIO AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT & LOSS

Amounts presented in EUR '000 Amounts presented in EUR '000
Trading portfolio 30/06/2009 31/12/2008
Corporate entities bonds 637 3,688
Equity securities 3,498 2,276
Total 4,135 5,965

11. INVESTMENT PORTFOLIO

Amounts presented in EUR '000 Amounts presented in EUR '000
Available-for-sale 30/06/2009 31/12/2008
Equity securities 276,218 248,508
Total 276,218 248,508

Investment in MIG constitutes the major investment in IRF's portfolio as at 30 June 2009.

12. OTHER ASSETS

Amounts presented in EUR '000 Amounts presented in EUR '000
Trading portfolio 30/06/2009 31/12/2008
Dividend income (note 6) 18,198 -
Prepayments to third parties 5 63
Brokerage fees & settlements receivables - 381
Other receivables 52 163
Total 18,254 607

13. LONG TERM LOANS Amounts presented in EUR '000 30/06/2009 31/12/2008
Long-term loans 198,134 198,393
Total 198,134 198,393

The loan bears interest of 3 month Euribor plus 2.75% spread and 0.6% Greek Law contribution. From the implementation of IAS 39, the effective rate has been calculated to 4.98% as at 30 June 2009 and 6.37% as at 31 December 2008. All investment portfolio and cash accounts of IRF are assigned as collateral to the loan which is repayable in full by September 2011.

14. OTHER LIABILITIES
Amounts presented in EUR '000 30/06/2009 31/12/2008
Salaries payable 8 17
Brokerage transactions 709 -
Suppliers and other third party liabilities 197 1,739
Total 914 1,755

15. SHARE CAPITAL & SHARE PREMIUM
Amounts in EUR' 000 Number of shares Nominal value $ Share capital in $ Share capital Share premium Total
Opening balance at 1 January 124,832,394 - 187 147 400,443 400,590

Share premium returned to (17,951) (17,951)

shareholders
Closing balance at 30 March 124,832,394 - 187 147 382,491 382,639

At a Special General Meeting of the Company held on 21 May 2009, the shareholders resolved to reduce the Company's share premium account from US$520,344,639.17 to US$495,378,160.37, enabling an amount of US$0.20 per common share to be paid to holders of the Company's common shares. The amount was paid to shareholders on 9 June 2009. The reduction of share premium does not reduce the authorised or issued share capital of the Company or the nominal value of the shares of the Company.

As at 30 June 2009, there are 13,596,541 Warrants outstanding which may be exercised by 14 November 2009.

16. CASH AND CASH EQUIVALENTS - CASH FLOW STATEMENT

In the 30 June 2008 comparatives, the Cash and Cash equivalents for the Cash Flow Statement also contain the balances from Proton Group. For the purposes of preparing the Cash Flow Statement of the Group for 30 June 2008, the short-term placements in other financial institutions, which are either immediately available or available within 90 days, were included in the cash account.
Amounts presented in EUR '000 30/06/2009 30/06/2008
Cash and balances with Central Bank - 37,141
Petty cash 1 1
Deposits placed in other financial institutions 22,580 110,132
Time deposits 106,751 1,892
Loans and advances to financial institutions - 132,300
Asset held for sale - 223
Total - Included in cash and cash equivalents 129,333 281,690

17. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit attributable to shareholders by the weighted average number of shares in issue during the year. Diluted earnings per share are calculated by adjusting the weighted average number of common shares outstanding to assume exercise of the warrants. Basic and diluted earnings per share are analysed below:

Six month period Three month period
Amounts presented in EUR '000 1/1 - 30/06/09 1/1 - 30/06/08 1/4/- 30/06/2009 1/4 - 30/06/08

Basic earnings per share
Profit from continuing 9,432 4,596 23,239 11,624

operations and discontinued operations attributable to the parent Company's shareholders
Weighted average number of 124,832,395 124,832,395 124,832,395 124,832,395

shares in issue
Basic earnings per share ( 0.08 0.04 0.19 0.09

EUR/Share )

Profit from continuing 9,432 12,284 23,239 20,607

operations attributable to the parent Company's shareholders
Weighted average number of 124,832,395 124,832,395 124,832.395 124,832.395

shares in issue
Basic earnings per share ( 0.08 0.10 0.19 0.17

EUR/Share ) Diluted earnings per Share
Net Profit attributable to the 9,432 4,596 23,239 11,624

parent Company's shareholders
Weighted average number of 124,832,395 124,832,395 124,832,395 124,832,395

shares
Plus: Shares with no - 2,329,215 - 2,788,577

consideration (adjustment in number of shares due to probable exercise of Warrants)
Weighted average number of 124,832,395 127,161,610.29 124,832,395 127,620,972

shares for the purposes of diluted earnings per share
Diluted earnings per share 0.08 0.04 0.19 0.09

(EUR/Share )

Net Profit from continuing 9,432 12,284 23,239 20,607

operations attributable to the parent Company's shareholders
Weighted average number of 124,832,395 124,832,395 124,832,395 124,832,395

shares
Plus: Shares with no - 2,329,215 - 2,788,577

consideration (adjustment in number of shares due to probable exercise of Warrants)
Weighted average number of 124,832,395 127,161,610.29 124,832,395 127,620,972

shares for the purposes of diluted earnings per share
Diluted earnings per share 0.08 0.10 0.19 0.16

(EUR/Share )

The effect of IRF's "Offering" of warrants on diluted earnings per share for the first summester of 2009 has not been taken into consideration since it is anti-dilutive. Also the effect of Proton's stock option plan on diluted earnings per share has not been taken into consideration for the comparative first summester of 2008 since it is anti-dilutive.

18. RELATED PARTIES TRANSACTIONS

18.1 Transactions between companies included in consolidation

Transactions of the parent company with Subsidiaries
Amounts presented in EUR '000 30/06/2009 31/12/2008

Liability accounts
Other liabilities 71,025 70,881
Total 71,025 70,881
Amounts presented in EUR '000 30/06/2009 30/06/2008

Income
Dividend income - 2,582
Interest income - 433
Total - 3,016

The aforementioned balances of the Company have been eliminated from the consolidated financial statements.

18.2 Transactions with Associates

Amounts presented in EUR '000 30/06/2009 30/06/2008

Income /Expenses
Other operating income - 70
Interest and similar expenses - (95)
Total - (25)

18.3 Transactions with Management and Members of the Board of Directors

No salaries or loans were paid to the Directors of the Company for the period, apart from salaries paid to the CEO of the Company.

Transactions with Management and Members of the Board of Directors
Amounts presented in EUR '000 30/06/2009 31/12/2008

Transactions with Management and Members of the Board of Directors
Amounts presented in EUR '000 30/06/2009 31/12/2008

Liability accounts
Other Liabilities 8 1,009
Total 8 1,009

Income
Interest and similar income - 862
Other income - 674
Total - 1,536

Expenses
Remuneration (50) (2,802)
Interest and similar expenses - (1,326)
Other fees & expenses - (139)
Total (50) (4,267)

19. COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES

19.1 Contingent legal liabilities

As at 30 June 2009, there was no litigation pending against the Group in connection with its activities.

19.2 Assets given as collateral

All investment portfolio and cash accounts of IRF are assigned as collateral to IRF's long term loan.

20. POST-BALANCE SHEET EVENTS

There were no subsequent events according to the International Financial Reporting Standards regarding the Group, which need to be mentioned.

21. APPROVAL OF INTERIM FINANCIAL STATEMENTS

Athens, 24 August 2009

Angeliki Frangou Loukas Valetopoulos

______________________________ _________________________________
___ Chief Executive Officer, Director

Chairman, Non - Executive Director

This information is provided by RNS The company news service from the London Stock Exchange

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